NYC Apartment Rents Fall as Tenants Gain Leverage (Update3)
By Brian Louis
Aug. 25 (Bloomberg) -- Manhattan apartment rents fell as much as 10 percent in August from a year ago as tenants gained negotiating power in the recession and forced landlords to offer concessions.
In buildings attended by doormen, rents on one-bedroom apartments dropped 10 percent from a year earlier to an average of $3,274 a month, according to a report by the Real Estate Group of New York. Studio prices fell 7 percent at those properties to $2,329 and two-bedrooms declined almost 6.9 percent to $5,161. Soho and TriBeCa were the most expensive neighborhoods.
Rents in Manhattan are falling as unemployment climbs. The number of job seekers rose to 402,200 in July, the most since 1992, New York City’s Comptroller William Thompson said yesterday. Landlords are offering incentives such as free rent and paying brokerage fees to lure tenants, said Daniel Baum, chief executive officer of the Real Estate Group.
“The concessions out there right now are pretty aggressive,” he said.
The city’s unemployment rate climbed to a 12-year high of 9.6 percent in July even as the national rate ticked down to 9.4 percent. The U.S. economy has lost 6.7 million jobs since the recession began in December 2007, making it the biggest employment slump in the last eight decades. Economists surveyed by Bloomberg predict the unemployment rate will reach 10 percent by early next year.
Rising U.S. Vacancies
That translates into less pricing power for landlords. U.S. apartment vacancies jumped to 7.5 percent in the second quarter, the highest level in 22 years, according to New York-based research firm Reis Inc. Asking rents dropped 0.7 percent from a year earlier to an average of $1,040 a month.
Rising vacancies and falling rents sent shares of real estate investment trusts that own apartments lower in the last year. The 13-member Bloomberg index of apartment landlords fell 36 percent in the 12 months through yesterday.
The Manhattan survey released today is based on data from more than 10,000 available apartment listings, according to the Real Estate Group.
In Manhattan’s non-doorman buildings, the average rent for studio apartments fell 8 percent to $1,931. One-bedrooms dropped 5.9 percent to $2,606 and two-bedrooms fell 8.2 percent to an average of $3,527.
On the Upper West Side, the average rent for a one-bedroom apartment in a doorman building was $3,236. In Greenwich Village, a similar apartment averaged $3,654.
Across Central Park on the Upper East Side, the average rent for a one-bedroom apartment in a doorman building is $3,276. In Gramercy Park, the price averages $3,656.
The least expensive average rents were in Harlem, where the monthly price ranged from $1,274 for a studio to $2,105 for a two-bedroom unit in a building without doormen.
To contact the reporter on this story: Brian Louis in Chicago at blouis1@bloomberg.net. Last Updated: August 25, 2009 14:09 EDT
Monday, August 31, 2009
New Consumer Protections for Credit Cards and Mortgages: How They Can Help Borrowers
With all the discussion of Health Care Reform, much of what has occurred with other legislation has gotten a bit lost in the news. I believe the credit card reform bill is one of them and people should be informed to the rights that have been reinstated to them regarding notice; and also there is an important segment related to home mortgages and disclosures (see more by scrolling below).
The FDIC's press release today, lists many of the key issues - and since they have done better than what I could only hope to summarize, I'm reprinting here in its entirety their release for your convenience and information.
New Consumer Protections for Credit Cards and Mortgages: How They Can Help Borrowers Avoid Surprises Other Topics in the Latest FDIC Consumer News Include Making the Most of Bank Rewards Programs and New Resources Explaining Deposit Insurance Coverage
FOR IMMEDIATE RELEASE August 31, 2009
Media Contact: Jay Rosenstein (202) 898-7303 jrosenstein@fdic.gov
New federal consumer protections for credit cards and mortgages -- including prohibitions against abusive lending practices and requirements for clearer, more timely disclosures -- will help people avoid surprises. The Summer 2009 issue of FDIC Consumer News from the Federal Deposit Insurance Corporation features key changes in the rules and what they mean for the public. The protections for credit cards are the result of a new law passed in May that is intended to help shield consumers from abusive fees, penalties, interest rate increases and other unwarranted changes in account terms. Most of the provisions start next year, but some took effect August 20, 2009, including a requirement that card issuers must generally provide a 45-day advance notice of a rate increase or other significant changes in account terms, up from 15 days.
The expanded notice period should give consumers more time to react to rate increases or other adverse account changes.
As for mortgages, the new rules feature prohibitions by the Federal Reserve Board against a variety of unfair or deceptive lending practices involving loans made on or after October 1, 2009. Some of the Fed's rules apply to all home mortgages except for home equity lines of credit, and they include prohibitions against inaccurate appraisals (to prevent a consumer from overpaying for a home or borrowing too much) and the unfair handling of loan payments (to avoid unnecessary fees).
Other parts of the Fed's rules protect subprime borrowers obtaining high-cost mortgages. More broadly, there are new requirements from the Fed and the U.S. Department of Housing and Urban Development for early disclosures of mortgage terms and costs.
Also in this issue of the FDIC's quarterly newsletter for consumers are tips on making the most of bank rewards programs, such as credit cards that enable users to gradually accumulate cash rebates or "points" good for free travel or merchandise, and checking accounts that offer cash or other prizes for frequently using a debit card. The publication says that these programs can be great deals for consumers, but the key is to be on guard against potential pitfalls that include allowing the rewards to overshadow the more important features of an account when comparison shopping, and overspending (in pursuit of the free benefits) that can result in interest charges and unmanageable debt.
The newsletter also notes the availability of a new FDIC brochure and video to help consumers understand their deposit insurance coverage, including how to have far more than $250,000 protected at the same bank. The latest FDIC Consumer News can be read or printed at www.fdic.gov/consumers/consumer/news/cnsum09. To order up to two free paper copies, consumers can use the online form on that same Web page or call the Federal Citizen Information Center toll-free at 1-888-8-PUEBLO (1-888-878-3256) weekdays from 8:00 a.m. to 8:00 p.m. Eastern Time and ask for Department D96.
The goal of FDIC Consumer News is to deliver timely, reliable and innovative tips and information about financial matters, free of charge. To find current and past issues, including special editions, visit www.fdic.gov/consumernews or request paper copies by contacting the FDIC's Public Information Center toll-free at 1-877-275-3342, by e-mail to publicinfo@fdic.gov, or by writing to the FDIC Public Information Center, 3501 North Fairfax Drive, Room E-1002, Arlington, VA 22226. There are two ways to subscribe to the quarterly FDIC Consumer News. To receive an e-mail about each new issue with links to stories, go to www.fdic.gov/about/subscriptions/index.html.
To receive the newsletter in the mail, free of charge, contact the Public Information Center as listed above. The FDIC encourages financial institutions, government agencies, consumer organizations, educators, the media and anyone else to help make the tips and information in FDIC Consumer News widely available. The publication may be reprinted in whole or in part without advance permission. Organizations also may link to or mention the FDIC Web site.
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,195 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed.
The FDIC receives no federal tax dollars -- insured financial institutions fund its operations. FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-158-2009
The FDIC's press release today, lists many of the key issues - and since they have done better than what I could only hope to summarize, I'm reprinting here in its entirety their release for your convenience and information.
New Consumer Protections for Credit Cards and Mortgages: How They Can Help Borrowers Avoid Surprises Other Topics in the Latest FDIC Consumer News Include Making the Most of Bank Rewards Programs and New Resources Explaining Deposit Insurance Coverage
FOR IMMEDIATE RELEASE August 31, 2009
Media Contact: Jay Rosenstein (202) 898-7303 jrosenstein@fdic.gov
New federal consumer protections for credit cards and mortgages -- including prohibitions against abusive lending practices and requirements for clearer, more timely disclosures -- will help people avoid surprises. The Summer 2009 issue of FDIC Consumer News from the Federal Deposit Insurance Corporation features key changes in the rules and what they mean for the public. The protections for credit cards are the result of a new law passed in May that is intended to help shield consumers from abusive fees, penalties, interest rate increases and other unwarranted changes in account terms. Most of the provisions start next year, but some took effect August 20, 2009, including a requirement that card issuers must generally provide a 45-day advance notice of a rate increase or other significant changes in account terms, up from 15 days.
The expanded notice period should give consumers more time to react to rate increases or other adverse account changes.
As for mortgages, the new rules feature prohibitions by the Federal Reserve Board against a variety of unfair or deceptive lending practices involving loans made on or after October 1, 2009. Some of the Fed's rules apply to all home mortgages except for home equity lines of credit, and they include prohibitions against inaccurate appraisals (to prevent a consumer from overpaying for a home or borrowing too much) and the unfair handling of loan payments (to avoid unnecessary fees).
Other parts of the Fed's rules protect subprime borrowers obtaining high-cost mortgages. More broadly, there are new requirements from the Fed and the U.S. Department of Housing and Urban Development for early disclosures of mortgage terms and costs.
Also in this issue of the FDIC's quarterly newsletter for consumers are tips on making the most of bank rewards programs, such as credit cards that enable users to gradually accumulate cash rebates or "points" good for free travel or merchandise, and checking accounts that offer cash or other prizes for frequently using a debit card. The publication says that these programs can be great deals for consumers, but the key is to be on guard against potential pitfalls that include allowing the rewards to overshadow the more important features of an account when comparison shopping, and overspending (in pursuit of the free benefits) that can result in interest charges and unmanageable debt.
The newsletter also notes the availability of a new FDIC brochure and video to help consumers understand their deposit insurance coverage, including how to have far more than $250,000 protected at the same bank. The latest FDIC Consumer News can be read or printed at www.fdic.gov/consumers/consumer/news/cnsum09. To order up to two free paper copies, consumers can use the online form on that same Web page or call the Federal Citizen Information Center toll-free at 1-888-8-PUEBLO (1-888-878-3256) weekdays from 8:00 a.m. to 8:00 p.m. Eastern Time and ask for Department D96.
The goal of FDIC Consumer News is to deliver timely, reliable and innovative tips and information about financial matters, free of charge. To find current and past issues, including special editions, visit www.fdic.gov/consumernews or request paper copies by contacting the FDIC's Public Information Center toll-free at 1-877-275-3342, by e-mail to publicinfo@fdic.gov, or by writing to the FDIC Public Information Center, 3501 North Fairfax Drive, Room E-1002, Arlington, VA 22226. There are two ways to subscribe to the quarterly FDIC Consumer News. To receive an e-mail about each new issue with links to stories, go to www.fdic.gov/about/subscriptions/index.html.
To receive the newsletter in the mail, free of charge, contact the Public Information Center as listed above. The FDIC encourages financial institutions, government agencies, consumer organizations, educators, the media and anyone else to help make the tips and information in FDIC Consumer News widely available. The publication may be reprinted in whole or in part without advance permission. Organizations also may link to or mention the FDIC Web site.
# # #
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,195 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed.
The FDIC receives no federal tax dollars -- insured financial institutions fund its operations. FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-158-2009
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